RailAmerica LBO financing credit facility to be sized at $650 million

By Sara Rosenberg

New York, Dec. 12 - RailAmerica Inc. revealed a total size of $650 million for its proposed senior secured credit facility that will be used to back its leveraged buyout by Fortress Investment Group LLC, according to a PREM14A filed with the Securities and Exchange Commission Tuesday.

Citigroup and Morgan Stanley are the lead banks on the deal.

Under the transactions agreement, Fortress will pay RailAmerica shareholders $16.35 in cash for each share. The total value of the transaction, including the refinancing of RailAmerica's existing debt, is $1.1 billion.

Other LBO financing will come from a $450 million equity commitment.

Closing is expected in the first quarter of 2007, subject to regulatory approvals, shareholder approval and other customary conditions.

RailAmerica is a Boca Raton, Fla., short-line and regional rail service provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.